Investment Q&A

Q: When determining geographic allocation of a portfolio, is it more appropriate to categorize a company based on where the majority of they business is transacted rather than where they are domiciled?

For example, is New Flyer better classified as US for geographic allocation purposes since 90% of their revenue currently comes from the US, or BAM.A as international since 90.4% of their assets under management are outside of Canada and spread across the world?

Also along these lines, is it worth the (very small) effort to sub-allocate companies that have meaningful exposure to more than one broad geographic area, e.g. classify approx. 1/2 of BNS as Canadian and 1/2 as emerging markets based on their business operations?

I ask this in the context of your previous comments that a 45%/35%/15%/5% CAD/US/INTL/EM allocation is appropriate for an average Canadian investor. Thanks as always for your sapient and perspicuous advice!

Q: I am fairly new at this and of the companies mentioned above I want to set up a Dividend portfolio using 3 to 4 of them. Suggestions would be very much appreciated as I am not well schooled in this area.
Thank you

Q: Hello 5i, Have you any information as to the financial problems at TD Waterhouse direct investing as I have sent emails with no response and tried to phone also with no answer after a long time on hold. There are financial errors in my accounts which is quite concerning. Thanks

Q: Is there a web site that lists Canadian corporate bonds that are available for purchase and their rating? What minimum rating would you recommend for purchase of Canadian corporate bonds?

Thanks

Q: Good morning 5i Team.
I'm starting to be concerned about the potential for a significant correction in the markets. I'm interested in your opinion on using a bear ETF on the TSX or S&P as a cost effective way to at least partially protect investments from significant correction? I've read that these tend to decay over time and should only be used for short periods. Is that correct? Does it apply only to the leveraged bear/bull etfs or all?
If the etf idea is not advisable, what would you suggest?
I've got a few questions in there so please take as many credits as necessary.
Thanks
Peter

Q: I would like your opinion on using a market order or a limit order.
Which one do you suggest?

Q: With the repatriation of US dollars from overseas, what is your expectation of the impact on the USD specifically compared to the CAD?

Thank you.

Q: With JP Morgan giving their earnings report tomorrow, do you think the tax changes in the United States are reflected in the current pricing? Also do you think at current pricing that it is a good entry point (new record high)? Would you recommend starting a position today before the report or waiting? Would you recommend this being added to an RRSP (no-withholding tax)?

Finally, I have tried to find that blog post that was written a while ago about what account is best to put certain securities (CDN vs. US vs. Dividend (CDN/US)) but I cannot seem to find it. If you would be so kind to provide a link to it I would greatly appreciate it as I find its a great guide for new investors like myself.

Thanks so much for all your advice and great service! I cannot say how much I learn on a daily basis thanks to you and your team!

Q: I would like to purchase some protection against market volatility but am unsure of the best way to do this. VXX and HUV are a play on the futures but if I am correct there is a time/price decay involved in the price as well. Is there another way to to protect against market volatility other than holding cash? Thanks

Kenn

Q: Good Morning
In my portfolio review AUG/16 you suggested the following for my fixed income portion (50%) of my rrif- xhy 5.6%, Clf 5.7%, MDL 240 14.1%, XSH 12.3%, ZAG 12.1%. Reading the last mutual fund/etf update I am wondering whether you would make any suggestions as steady interest rate rise seems more of a certainty than at that time. A conservative income oriented portfolio.
Tom

Q: Could you please explain the difference between a bond ETF (like XSB or CBO) and buying a bond portfolio in a mutual fund.
Are the ETFs safe for capital retention or do they act more like equities?
Thanks

Q: What books/web sites/resources do you recommend that deals with Estate planning for Canadians, ON resident. Something that is easy to decipher with the emphasis on transition of wealth to adult children in a tax advantaged manner?
Unfortunately most of the advisors/banks seem to interested in selling Universal/Whole Life insurance or asking to make their organisations be the Trustee/co-executor. Prefer that is something conflict free like 5i !!
Thanks in advance.

Q: For a retired investor with 2/3 of his portfolio in an diversified dividend equity portfolio and with 500 k to invest in safer income producing investments and just purchased 73k of CPD, 60k of ZPR, 40k of XHY, leaving 327k still to invest, would you add to these positions or could you suggest other places to invest for income. Would you wait till after NAFTA is decided and then invest. Thanks for your opinion.

w

Q: I own about 16% utilities - all have been falling quite a bit recently. Based on my limited knowledge of technicals, it seems that they are all at their support levels (except TRP which appears to be below that level). Is it time to buy into these utility stocks based on technicals, or does it seem that they are going to fall some more based on interest rate hike fears, so it would be best to lighten up on utilities? or just do nothing?

Q: Is this a good opportunity to add to these types of names or do you see more weakness coming with interest rate fears lingering?

Q: Hi, I keep reading (Bill Gross and others) that bond yields have breached long term resistance levels and that we are entering a bear market in bonds. Meantime utilities and interest rate sensitive stocks are being hammered. Could you provide your view how much interest rates might rise further from here and to what extent utility stocks and others are discounting future rate hikes. Is this a potentially good buying opportunity? Thanks!

Q: I feel like I'm consulting an oracle here but I am wondering what your thoughts are on an impending correction. My concern is with respect to the amount of people chasing up tech and marijuana stocks especially. Everything has risen so much in the last 6-12 months that I can't help but think we are over due for a pullback. Would it be wise to sit on the sidelines and wait? I hate to miss out on the party but I'd rather lose a bit of upside here and be able to take advantage of a possible major pullback than be the last one out the door after the party is over. Thanks in advance.

Q: I was looking at an ETF - it's cost info is below.
Does this mean I pay a total of .80%, or do I pay .65% plus .80% (total of 1.45%).
Thanks.

MANAGEMENT EXPENSE RATIO (MER)
0.80%
MANAGEMENT FEE
0.65

Q: Hello Peter and team,
Ishares and Vanguard both have world Ex Canada ETFs that are 50% U.S.and 50% everything else. Is there an advantage to owning US and International ETFS separately that can be rebalanced, or is a product like this a good one as there are less fees incurred to buy and sell? Do the managers of the EX Canada ETFs rebalance their holdings? Thank you.

Q: Hello,

If Cannibis and Blockchain companies were to go through a large correction, what would your view be on how it would effect the rest of the tsx?

Regards,

Robert